Defined benefit plans add nearly 200,000 members as public sector drives pension growth in 2023
Defined benefit (DB) plans added nearly 200,000 new members in 2023, maintaining their dominant share of pension coverage at 68.1 percent, according to Statistics Canada.
These plans, which guarantee a retirement income based on tenure, salary, and age, continued to outpace other models, particularly in the public sector.
Public sector membership in registered pension plans (RPPs) grew by 4.5 percent, adding nearly 169,000 participants for a total of just over 3.9 million.
Defined benefit plans accounted for the bulk of that growth, with membership rising by 163,200 or 4.8 percent.
By contrast, private sector plans added almost 125,000 members, a 3.9 percent increase. Employment rose by 3.0 percent in the public sector and 4.0 percent in the private sector during the same period.
Overall, RPP membership across Canada grew by 4.2 percent, reaching over 7.2 million members—an increase of 293,500 from 2022.
This surpassed the 3.8 percent rise in employment, according to the Labour Force Survey.
In the private sector, defined benefit plans grew more modestly by 2.8 percent, adding 36,600 members. Defined contribution (DC) plans, which base retirement payouts on accumulated savings and returns, expanded more rapidly in the private sector.
DC plan membership increased by 60,400 or 5.5 percent, and these plans now account for 18.6 percent of total RPP membership. Most DC plan members—86.7 percent—were in the private sector.
Pension membership also rose in hybrid, composite, and combination plans, collectively classified as “other” plans.
These added 28,400 new members in 2023, marking a 3.0 percent rise. Combined, these plans made up 13.3 percent of RPP membership.
Women continued to make up the majority of pension plan members, holding a 51.3 percent share of total membership.
In 2023, female membership increased by 150,700 (4.2 percent) to more than 3.7 million.
Women accounted for 56.0 percent of total DB plan members and 63.8 percent of new public sector members.
Among Canada’s 23 largest public sector pension plans, 20 had more female than male members.
Ontario recorded the largest increase in new pension members in 2023, gaining 161,800.
Quebec followed with 54,800, while British Columbia and Alberta added 32,000 and 18,700, respectively.
Manitoba was the only province to see a decline, with membership falling by 1,300.
The financial footprint of RPPs also expanded. Contributions from employers and employees rose by $2.9bn to $79.3bn in 2023.
Employees contributed $31.7bn, while net employer contributions for current service totalled $43.4bn. Contributions for unfunded liabilities accounted for another $4.1bn.
The market value of RPP assets climbed by $56bn to just under $2.4tn.
